Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2014 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (4) TMI 705 - ITAT HYDERABADDisallowance of interest on loans – Held that:- The term loan obtained by assessee among various other secured loans was in fact carried-over term loan which was reflected in the Balance Sheet as on 31st March, 2008 as well - assessee has submitted detailed explanation before the CIT(A) that it has its own funds available and no part of the borrowed funds were diverted – but, the CIT(A) did not examine the facts and went by the observations of the AO - Even though, CIT(A) accepted that funds were given to the sister concern for purchase of land, he was of the opinion that it is diversion of funds – though, the contentions of assessee were examined by the authorities, the matter is required to be re-examined – thus, the matter is matter is remitted back to the AO for examination about the borrowed funds and see whether any part of the amount has been diverted for non-business purposes – Decided in favour of Assessee. Disallowance u/s 40(a)(ia) of the Act – Held that:- Assessee contended that the amount added back need not be added back is correct - since the CIT(A) has already directed the AO to verify and as submitted by the assessee the details of payments are already stated in the 3CD report as well as enclosure to the returns, AO is directed to allow the amount, if the amounts are paid by due date as per the amended provisions of the Act - It was also contended that the amount of Rs.33,99,622/- was also paid within the period - This amount is also required to be verified and if paid within the dates as permitted by amended provision, no addition can be made – Decided in favour of Assessee. Disallowance for want of evidence – Held that:- It is an admitted fact that the assessee failed to produce any bills or vouchers and in the absence of necessary evidence – AO as well as CIT(A) disallowed the amount – assessee contended that the disallowance pertains to amounts paid to various Government organisations for land development, permissions, approvals etc. - but, in the absence of any evidence of expenditure, it cannot be allowed – Decided against Assessee.
|